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More than 175,000 Victorian businesses stand to benefit from a four-week $2.34 billion booster package, which will run until 30 September as the state’s businesses continue to grapple with the sustained impacts of lockdown restrictions.
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Victoria announces September business boost
06 September 2021
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11 minute read
Victorian Premier Daniel Andrews announced the state’s largest business support boost on Saturday, paid for in partnership with the Commonwealth, which will flow primarily to businesses eligible for the Business Costs Assistance program, and now offers larger payments to businesses with more staff.
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Up to $1.6 billion of the total booster package will go to roughly 132,000 businesses as part of either round two of the Business Costs Assistance program, or its July extension. The Premier’s office said instant payments made through the program will be made automatically.
Now in its fourth iteration, the program previously capped payments to businesses at $2,800 a week. Through September, however, payments will be made at three tiers.
Businesses with payrolls of less than $650,000 will receive weekly payments of $2,800; those with payrolls of between $650,000 and $3 million will receive $5,600 a week; and businesses with payrolls of between $3 million and $10 million will receive weekly payments of $8,400.
The Victorian Minister for Industry Support and Recovery, Martin Pakula said the three-tiered system offers recognition to the need for more targeted business support across the state.
“It means businesses with more workers will have greater support to maintain those numbers in coming weeks as we look to a future with high levels of vaccination and greater freedoms,” Mr Pakula said.
“These are hard yards being done right now, but the rewards will be significant. In the meantime, we’ll continue to stand by Victorian businesses and their workers.”
Victoria’s September business boost will also see substantial support flow to small businesses, whose payments have been increased from $14,000 to $20,000.
The state’s Small Business COVID Hardship Fund will receive a $448 million overall boost and offer automatic payments to some 16,000 businesses already eligible for the scheme. Those that have already received a grant under the scheme will receive an automatic top-up of $6,000.
The funding boost will also see automatic payments of $5,000, $10,000 and $20,000 – depending on venue capacity – made to some 9,300 businesses under the Licensed Hospitality Venue Fund after it received a cash boost of $289 million.
Venues that have a venue capacity of up to 99 patrons will receive $5,000, while those with capacity limits between 100 and 499 patrons will receive $10,000, and those with capacities of 500 or more will receive payments of $20,000.
Federal Treasurer Josh Frydenberg said the Morrison government has and will continue to support Victorian businesses.
“The Morrison Government understands the significant impact extended lockdowns have on individuals and businesses right across Victoria,” Mr Frydenberg said.
“We will continue to support Victorians, with our ongoing economic assistance to meet the challenges of the Delta strain.
“Already, the Commonwealth has provided $1.3 billion in COVID-19 disaster payments to Victorians, supporting the incomes of around 500,000 individuals and in partnership with the State Government, committed more than $4 billion to small and medium sized businesses over course of this lockdown.”
The state’s Alpine Support Package will receive a $11.2 million cash injection, as well, which will see alpine businesses squeezed by restrictions receive top-up payments of between $10,000 and $40,000.
For off-mountain businesses, the payment will be $10,000, for on-mountain businesses with no employees, $20,000, and for on-mountain businesses with employees, $40,000.
As part of the announcement, the Victorian government reminded eligible workers that they will continue to receive support under the COVID-19 Disaster Payment scheme, and so, too, will sole traders who are otherwise ineligible for anything else.
The payment will offer those who have lost between eight and 20 hours a week $450 a week, and $750 a week for those who have lost 20 hours or more. It is being administered through Services Australia.
Victorian Treasurer Tim Pallas said his government understands the challenges faced by small and medium-sized businesses across the state, and hopes its scope sparks renewed hope.
“Businesses of all colours and shades have shown great resilience and we’ll continue to back them as we move towards the levels of vaccination that we need in order to open up again in a sustained way,” Mr Pallas said.
“We are responding to changing circumstances with a package that is bigger than anything we’ve announced before, and it’s the right thing to do. It’s right for the dedicated business owners across the state and it’s right for their workers.
“This package will support our hardest-hit sectors and businesses and ensure they can keep paying the expenses that don’t go away just because the doors are shut.”
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